mortgage participation certificate

mortgage participation certificate

A pass-through security that represents ownership in a pool of conventional mortgages put together by Freddie Mac. Principal and interest on the certificates are guaranteed by Freddie Mac and the income is subject to federal, state, and local taxation. See also pass-through security.
References in periodicals archive ?
The latter consist of mortgages purchased and then sold to investors through our mortgage participation certificate (PC) program.
Two thousand lenders, a growing base of institutional investors and half a million homeowners have benefited from Freddie Mac's Gold Cash(SM) and Gold Mortgage Participation Certificates (Gold PC(SM)) since Freddie Mac introduced the mortgage purchase and pass-through security programs one year ago.
Freddie Mac wanted to evoke these coveted qualities when it chose the name for its Gold Mortgage Participation Certificates (PCs) and the Gold Cash Program.